By Mandisa Guliwe, E-commerce Manager for Anglophone Africa at Schneider Electric
10 December 2024,
South Africa’s e-commerce sector is set to grow to R225 billion by 2025, which signifies a 150% growth rate over five years, mainly driven by shifting consumer behaviours and heightened expectations.
Recent global events have accelerated this behavioural transition, with the post-COVID-19 lockdown era being largely characterised by consumers who have grown accustomed to the convenience and flexibility of shopping online.
Once businesses have an in-depth understanding of their market, they must adapt to this evolving landscape by investing in digital resources and prioritising seamless online experiences to compete effectively, particularly those that serve a channel market.
Beyond the convenience factor, one of the key drivers contributing to the significant shift in consumer behaviour towards online purchasing in South Africa is accessibility. E-commerce allows businesses to service customers in areas where they do not have a physical presence.
However, transitioning from a traditional brick-and-mortar model to an e-commerce-centric approach, which involves reimagining the customer experience in the digital environment, can be challenging. This process includes developing a user-friendly online platform that showcases products effectively, integrating secure and flexible payment options and optimising logistics for efficient delivery.
Driving engagement and loyalty
By leveraging digital marketing strategies and data analytics, organisations can better understand customer preferences, enabling personalised shopping experiences that drive engagement and loyalty in the online marketplace.
A lack of research can set businesses at a disadvantage in terms of digital readiness. Early e-commerce adopters have an advantage simply because they studied the market and know the potential of e-commerce in South Africa. Also important is the need to upskill for future jobs. Businesses must invest in the best digital minds and gear non-digital resources towards the digital boom.
With studies showing that 93% of B2B buyers do research online before making a purchase, companies must optimise their digital strategies to better engage and convert potential clients in the channel space. Essentially, businesses must make the online shopping experience seamless.
However, simplifying customer journeys will require continuous optimisation based on behavioural analysis on the e-commerce platform, listening to customer feedback and using that as actionable insights to tailor the best user experience.
This should be combined with easy checkout and flexible payment options, as well as mobile-first capabilities, as most customers initiate the buying process via some type of mobile device.
Successful e-commerce strategy
Based on Schneider Electric's three-pillar approach to e-commerce, these are the key elements of a successful e-commerce strategy for large organisations operating in the South African market:
- Understand the market and the potential value it brings, from customer preferences, right down to average basket size.
- Understand who your audience is, understand what their needs are and provide solutions tailored to these needs.
- Leverage earned, owned, and paid media channels.
This benefits a channel environment of distributors, retailers, and resellers because this approach to digital transformation means we are not leaving any business partner behind. Schneider Electric’s strategy anchors partners who are at different stages of their transitioning journeys and ensures the necessary support is provided.
Ultimately, e-commerce is a gateway for small and medium enterprises that do not have the capital investment for a physical store, which is no longer a barrier to entry. At the same time, e-commerce enables business continuity, even in the face of uncertainties, which means that no business should be forced to shut down.
Businesses that are looking to enter the e-commerce space should not be afraid to test the waters – learn and fail fast. Every digital transformation journey will have its challenges, but organisations should focus on the learnings to create an unmatched tailored experience for their customers online.
